Avon and Rubbermaid: Strange Bedfellows

Newell Rubbermaid has been partnering with Avon Products to sell the former's food-storage tubs in Brazil -- and may do the same in other developing countries.
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NEW YORK (TheStreet) -- Newell Rubbermaid (NWL) - Get Report has been partnering up with Avon Products (AVP) - Get Report to sell the former's food-storage tubs in Brazil, and may do the same in other developing countries, according to a report.

Newell seeks to expand its partnership with Avon as the former seeks to deepen its imprint in developing markets, while keeping risks and costs at a minimum.

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Currently, Newell derives the lion share of its sales from the U.S. and Canada.

According to


, last week Newell executives announced at an analyst conference in Atlanta that it may --, as it already has in Brazil -- utilize Avon's massive sales force to distribute Newell products where they currently aren't being offered. Examples include China.

This approach seems to be working quite nicely for Newell so far in Brazil; Avon has 1.2 million salespeople there and Newell has been able to engage in door-to-door distributions of some of its most famous products through them, while saving millions of dollars in the process, according to



Avon stock is flat at $25.88 in midday trading, while shares of Newell have risen 1.1% to $16.85.

Meanwhile, P&G has inched up 0.1% to $61.23.

In related news, there's been word that

Procter & Gamble

(PG) - Get Report

is interested in acquiring Newell -- although it's worth noting that these rumors have not been confirmed.

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-- Reported by Andrea Tse in New York

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